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Status quo for Jetstar here despite major Qantas revamp

Qantas’ decision to separate its international and domestic operations won’t change local operations of its budget airline Jetstar in New Zealand.

David Hall remains Jetstar’s chief executive for Australia and New Zealand, while the major restructure affects the Qantas Group’s wider executive team.

One notable change is the departure of Jetstar boss Bruce Buchanan – who led its operations in this country until two years ago.

The Australian airline yesterday announced it is dividing its international and domestic operations.

Each business will have its own chief executive, and will report its financial results separately.

Qantas says the separation will help to focus efforts on the priority goal to turn around the loss-making international business.

While Qantas' domestic airline made an underlying net profit of $552 million in the 2010-11 financial year, the international business was $216m in the red.

Qantas’ no-frills subsidiary Jetstar replaced Qantas on New Zealand domestic routes in 2009.

Mr Buchanan will remain with Jetstar for the next six months to assist with the transition.

He will then provide consultancy services to the Qantas group for another 18 months.

More by Georgina Bond

Comments and questions

When is Jetstar going to offer frequent flier lounges. The ex Qantas louges are still available I believe and jetstar does operate them in Oz.